Who Owns Whom

Since the new democratic dispensation, several national freeway systems were upgraded and tolls were introduced on key highways such as the N1, N3, N12 and N4. The South African National Roads Agency (SANRAL) led these projects, ensuring that the country remains well-connected nationally.

The WOW report on the operation of roads and tolls pointedly demonstrates how the cost of neglect and lack of maintenance has been pervasive in most of the country’s productive infrastructure assets.

The report also illustrates how the significant backlogs in road maintenance of the provincial and rural road networks are contributing to the high cost of road building as government tries to catch up with the maintenance of the failing rail infrastructure.

The role of SANRAL in the development of key roads and corridors in South Africa

SANRAL successfully led the development and maintenance of national roads through a toll roads model, raising much-needed revenue through toll fees and private sector investment. The N4 concession contract in 1998 saw the private sector investing over R1.6bn in road infrastructure. Over and above that, government was included in a revenue share agreement with government. The success of this model led to the decision by government to replicate it through the e-toll system to cover the road upgrades required for the 2010 soccer World Cup.

Lack of maintenance and the cost thereof

road deterioration and repair cost

The graph shown here illustrates how repair costs increase exponentially without proper maintenance. Between a 15 year old road and a 20 year old road, repair costs can increase by a factor of 18.

The lack of road maintenance has put the government in a predicament of having to budget far larger amounts than what could have been. This extra cost has been significantly augmented by the collapse and disuse of the railway infrastructure for passenger and freight transport, with heavy-duty rail freight transport moving to roads and causing an accelerated deterioration of many roads.

The graphs below illustrate the extent of the shift from road to rail over time.

rail and road payload
road and rail passenger journeys per year

Toll Roads

Two of the main considerations in toll road feasibility studies are the provision of alternative roads of an acceptable standard, and expectations that people would suppress (not take as many) trips.

The requirement to provide alternative roads was quietly removed from regulations to reduce the cost of building toll roads. Commuters were not able to suppress trips, such as going to work, and yet authorities chose to ignore the issue, going ahead to introduce e-tolls on urban roads.

The appeal of e-tolling technology and the prospect of high income to fund the World Cup blinded decision-makers to the downsides of not considering alternative roads for commuting. Prospective high toll fees caused SANRAL to concede to excessive costs to build and upgrade the road network in time for the World Cup.

Warnings of failed e-toll experiments in other countries such as Portugal were ignored. Lowering the tariffs and offering amnesty for non-payers were of no use as public outcry and obstruction to e-tolls persisted. The secrecy around the ownership and beneficiaries of the e-toll scheme added to the resistance by the public to the initiative.

Lessons learned

There are valuable lessons to be learnt. Timeous and effective maintenance of roads is critical to avoid huge repair costs. Government’s approach when embarking on the e-toll system highlights the importance of public consultation and transparency. Sustainable economic growth for the country will require stronger governance, better planning, transparent budgeting, cost control and proper oversight going forward.

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